Healthcare and student housing | MIPIM-World Blog

Investors look beyond core commercial property when they cannot find enough stock at the right returns, and over the past year that have piled into two so-called “alternative” investment sectors-  student housing and healthcare/senior living.

If asset classes are judged on sheer volume of capital invested and the herd-like instincts if fund managers then it surely cannot be long before these two sectors shadow reputation as nature markets.

Barely a week goes by without news of a major housing funding deal and such is the volume of activity that the sector is worth $200bn (€155bn) worldwide, according to the latest research by Jones Lang LaSalle.

In the UK alone says, JLL, investment deals topped $3bn in 2012– even more than in the US, where purpose built student accommodation is a long established asset class.

The latest deal involved Legal & General Property investing 25.7m (30.4m) in May into a development, prelet to University of the Arts London, at Elephant & Castle, central London. This is L& G’s fifth forward funding in the sector, taking its total to 330m in two years, in addition to a 121m debt facility to leading student housing operator UNITE.

The UK second-biggest operator, meanwhile, University Partnerships Program, now has mixed Chinese and Dutch parentage – Ginkgo Tree Investment at the London -registered arm of the China Investment Corporation, recently completed one of the biggest property investment deals in Europe this year with the acquisition of a 40% equity stake in UPP for £550m (€650m). Last year Dutch pension fund PGGM acquired 60% of the company for £840m.

Such activity, whether it’s corporate, direct investment or debt – has been underpinned by the rise in student numbers globally. They increased from 98m in 2000 to 165m in 2011 and are expected to top 263m by 2025.

JLL hails the emergence of “a mainstream global asset class” and the firm is similarly effusive about a healthcare/senior living sector that has attracted investors on the back of ageing populations in key Western markets.

By December 2012, three of the top 10 REITs by market value in the Standard & Poor’s US REIT index were companies specialising in healthcare/senior living. That performance followed Health Care REITs $844.6m (€689m) takeover of Sunrise Senior Living, which created one of the largest owners of nursing homes in the US, Canada and the UK. “Healthcare is coming of age,” says JLL director Phil Hall.

“Private equity has long been a fan of the healthcare sector, with over 70% of all mergers and acquisitions in EMEA being private equity backed,” he says. “Pension funds and other forms of institutional capital, on the other hand, have been harder to persuade of the sector’s merits.”

Read more on investment in healthcare and student housing on page 5 in ourJune edition of EuroProperty Trends




About Author

James Martin

As Head of Social Media for Reed MIDEM, James Martin oversees social strategy and deployment for MIPIM and MAPIC shows, as well as MIPTV/MIPCOM (TV industry) and Midem (music industry). He is based in Reed MIDEM's Paris office.


  1. Avatar

    Hi there just wanted to give you a quick heads up and let you know a few of the pictures aren’t loading correctly.

    I’m not sure why but I think its a linking issue.
    I’ve tried it in two different browsers and both show the same outcome.

  2. Avatar

    Hello, I do think your blog might be having internet browser compatibility problems.
    When I look at your blog in Safari, it looks fine but when opening in I.E., it has some overlapping
    issues. I merely wanted to give you a quick heads up! Other than that, excellent

  3. Avatar

    Wonderful items from you, man. I’ve be mindful your stuff previous to and you are just too excellent.
    I actually like what you have acquired right here, certainly like what you’re stating and the way
    wherein you assert it. You make it enjoyable and you continue
    to take care of to stay it wise. I can’t wait to
    learn much more from you. That is actually a great web site.

  4. Avatar

    Howdy, I believe your web site might be having internet browser compatibility problems.

    Whenever I look at your site in Safari, it looks fine however when opening in Internet Explorer,
    it’s got some overlapping issues. I just wanted to give you a quick heads up!
    Aside from that, excellent site!

  5. Avatar

    Hi, Neat post. There is an issue together with your
    web site in internet explorer, would check this? IE nonetheless is the market chief and a
    huge component of other folks will omit your wonderful writing because of this problem.

  6. Avatar

    Hello would you mind letting me know which hosting company you’re using?
    I’ve loaded your blog in 3 different internet browsers and I must say this blog loads a lot quicker then most.
    Can you suggest a good hosting provider at a reasonable price?
    Thank you, I appreciate it!

  7. Avatar

    We’re a group of volunteers and opening a brand new scheme
    in our community. Your web site offered us with useful info to
    work on. You’ve done a formidable activity and our whole neighborhood shall be grateful to you.

  8. Avatar

    Hey there! This is my first visit to your blog! We are a team of volunteers and starting a new initiative in a community in the
    same niche. Your blog provided us beneficial information to work on. You have done a wonderful job!

  9. Avatar

    Wonderful website you have here but I was curious if you knew of any message boards that cover
    the same topics talked about in this article?
    I’d really like to be a part of group where I can get comments from other experienced individuals that share the
    same interest. If you have any suggestions, please let me know.
    Appreciate it!

  10. Avatar

    Hello there, I do think your site may be having internet browser
    compatibility issues. When I look at your site in Safari, it
    looks fine however when opening in Internet Explorer, it
    has some overlapping issues. I just wanted to give you a quick heads up!
    Other than that, fantastic site!

  11. Avatar

    certainly like your website however you need
    to check the spelling on quite a few of your posts. Several of them are rife with spelling issues and
    I find it very troublesome to inform the reality however I’ll definitely come again again.

  12. Avatar

    Heya i’m for the primary time here. I came across this board
    and I to find It truly helpful & it helped me out much. I am hoping to offer something back and help others such
    as you helped me.

  13. Avatar

    Wow, fantastic blog layout! How long have you been blogging for?
    you make blogging look easy. The overall
    look of your site is great, let alone the content!

Leave A Reply